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Could someone explain why this acquisition makes sense? The core competencies between the two companies seem to have little overlap from my outsider perspective
by dhruvarora013 6y ago
Could someone explain why this acquisition makes sense? The core competencies between the two companies seem to have little overlap from my outsider perspective. Is this diversification or does Hyundai make more than automobiles?
- Krasnol 6y agohttps://en.wikipedia.org/wiki/Hyundai_Motor_Group https://en.wikipedia.org/wiki/Hyundai_Motor_Group
- dharmab 6y agoHyundai has a robotics subsidiary, which they plan to expand: https://www.hyundai-robotics.com https://www.hyundai-robotics.com
- msandford 6y agoHyundai is more like a GE than a GM. Nobody would really wonder why a conglomerate like GE bought yet another company. People just don't realize that Hyundai is a conglomerate because they sell cars too.
- pitaa 6y ago> does Hyundai make more than automobiles? Much more. "It is the second largest South Korean chaebol or conglomerate, after Samsung Group, related to other Hyundai-name industries following a specialized development split and restructuring which resulted in Hyundai Motor group, Hyundai Heavy Industries Group, Hyundai Development Company Group, Hyundai Department Store Group, and Hyundai Marine & Fire Insurance."[0] They even build ships and oil rigs. [0]: https://en.wikipedia.org/wiki/Hyundai_Motor_Group https://en.wikipedia.org/wiki/Hyundai_Motor_Group
- rmah 6y agoHyundai is a South Korean chaebol (sort of like a conglomerate). While it was ostensibly restructured into "independent" groups a while back, let's just say that, in practice, they're not really independent in the western sense. In addition to building cars and trucks, Hyundai does the following: * building construction (everything from homes to office and factories) * civil engineering (bridges, dams, shipyards, etc.) * trains of various kinds * military vehicles, including tanks * construction equipment (cranes, etc.) * manufacturing equipment (furnaces, presses, etc) * shipbuilding (both civilian and military) * shipping * offshore oil rigs * powerplants and electrical grid equipment * has a large retail department store chain * insurance * chemicals and plastics * lighting and, of course... robots (currently just industrial and medical)
- echelon 6y agoThis is what Amazon and Apple are trying to become.
- mywittyname 6y agoYeah, they are basically the Korean equivalent to GE, Siemens, Philips, Rockwell, United Tech, Northrop, etc.
- Gravityloss 6y agohttps://en.wikipedia.org/wiki/Hyundai_Steel https://en.wikipedia.org/wiki/Hyundai_Steel https://www.bloomberg.com/profile/company/HMINEZ:KS https://www.bloomberg.com/profile/company/HMINEZ:KS Steel making and mining, talk about vertical integration!
- dmurray 6y agoEven if Hyundai weren't a diverse conglomerate as several other commenters have pointed out, car manufacturing and robotics have plenty of overlap. Robots are used to make cars. Robots and cars both require precision engineering at a macro scale. Both have lots of electronics and control systems, even leaving out self-driving or autonomous capabilities. For 5% of Hyundai's market cap, I think you can make a case for BD being valuable to Hyundai just as a car manufacturer, or having synergies with its core business.
- abfan1127 6y agodoes Hyundai buy assembly robots or make them? Edit: they make them - https://www.hyundai-robotics.com/ https://www.hyundai-robotics.com/
- deleted 6y ago[deleted]